As a restaurant and bar owner, you know first hand how devastating this pandemic has been! While a lot of establishments are handling the pandemic through drive-thru, deliveries, and even by cutting costs—but there are a few costs that should not be considered for reduction, such as Bar and Restaurant Insurance!
In the short run it might seem tempting, but in the long term there can be big consequences for your business! If you live in a city that requires you to have at least some General Liability coverage, then it is probably not in your business’ best interests! There is a risk losing your license to operate if having insurance is required by your local/state government—and the reapplication process can be long and arduous later on!
If you have any equipment financing, or any business loans for your establishment, you may default on them if there is a clause to maintain insurance on your business! Also in the long run when you do get insurance again when times are back to normal—it might be more expensive to insure your business since there was a gap in coverage!
There are many more reasons why cancelling your bar and restaurant insurance is a bad idea—but it’s always best to talk with your agent to let them know about your situation and see what can be done before you cancel!